Tuesday, August 16, 2011

Petronas Gas advances at mid-morning

KUALA LUMPUR: PETRONAS GAS BHD [] shares rose on Tuesday, Aug 16 after CIMB Research said interest in Malaysia's sole gas transport company was likely to step up during these volatile times as it combines both defensive qualities and earnings-accretion potential through its new power plant and regasification terminal (RGT).

At 10.30am, Petronas Gas gained 48 sen to RM13.66 with 142,300 shares traded.

CIMB Research initiated coverage on Petronas Gas with an Outperform rating and sum-of-parts-based target price of RM16.13.

'Its cash flows are assured by a long-term contract with its parent Petronas which shields it from oil price volatility.

'Petronas Gas could be catalysed by its safe-haven status, new revenue streams and higher utilisation rates,' the research house said in a note Aug 16.

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